Boeing Wins $1.6B Navy Contract

SEATTLE (AP) — Boeing Co. won a $1.6 billion to build the P-8A Poseidon aircraft for the U.S. Navy.

The company said Tuesday the contract calls for the delivery of six of the aircraft, along with spares, logistics and training devices.

Boeing said the Navy ultimately plans to buy 117 of the 737-based aircraft, which are used for anti-submarine warfare, anti-surface warfare, intelligence, and surveillance. Initial operational capability for the aircraft is slated for 2013.

The Poseidon aircraft is built by a Boeing-led industry team of contractors that includes CFM International, Northrop Grumman, Raytheon, Spirit AeroSystems, BAE Systems and GE Aviation.

Shares of Boeing fell 49 cents, or 0.7 percent, to close at $72.24. They were up 67 cents, or almost 1 percent, in extended trading.